Economy Lebanon
Economy - overview:
The 1975-91 civil war seriously damaged Lebanon's economic
infrastructure, cut national output by half, and all but ended
Lebanon's position as a Middle Eastern entrepot and banking hub.
Peace enabled the central government to restore control in Beirut,
begin collecting taxes, and regain access to key port and government
facilities. Economic recovery was helped by a financially sound
banking system and resilient small- and medium-scale manufacturers.
Family remittances, banking services, manufactured and farm exports,
and international aid provided the main sources of foreign exchange.
Lebanon's economy made impressive gains since the launch in 1993 of
"Horizon 2000," the government's $20 billion reconstruction program.
Real GDP grew 8% in 1994, 7% in 1995, 4% in 1996 and in 1997, but
slowed to 1.2% in 1998, -1.6% in 1999, -0.6% in 2000, 0.8% in 2001,
1.5% in 2002, and 3% in 2003. During the 1990s, annual inflation
fell to almost 0% from more than 100%. Lebanon has rebuilt much of
its war-torn physical and financial infrastructure. The government
nonetheless faces serious challenges in the economic arena. It has
funded reconstruction by borrowing heavily - mostly from domestic
banks. In order to reduce the ballooning national debt, the
re-installed HARIRI government began an economic austerity program
to rein in government expenditures, increase revenue collection, and
privatize state enterprises. The HARIRI government met with
international donors at the Paris II conference in November 2002 to
seek bilateral assistance restructuring its domestic debt at lower
rates of interest. While privatization of state-owned enterprises
had not occurred by the end of 2003, massive receipts from donor
nations stabilized government finances in 2002-04.
GDP:
purchasing power parity - $17.82 billion (2003 est.)
GDP - real growth rate:
3% (2003 est.)
GDP - per capita:
purchasing power parity - $4,800 (2003 est.)
GDP - composition by sector: agriculture: 12% industry: 21% services: 67% (2000)
Investment (gross fixed):
24.8% of GDP (2003)
Population below poverty line:
28% (1999 est.)
Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA
Inflation rate (consumer prices):
2.5% (2003 est.)